TELKOM SA LIMITED - PRETORIA HIGH COURT SETS ASIDE ARBITRATOR"S PARTIAL AWARD IN

TELKOM SA LIMITED - PRETORIA HIGH COURT SETS ASIDE ARBITRATOR"S PARTIAL AWARD IN
TELKOM"S REVIEW APPLICATION                                                     
Telkom SA Limited                                                               
(Registration number 1991/005476/06)                                            
JSE and NYSE share code: TKG                                                    
ISIN: ZAE000044897                                                              
("Telkom")                                                                      
PRETORIA HIGH COURT SETS ASIDE ARBITRATOR"S PARTIAL AWARD IN TELKOM"S REVIEW    
APPLICATION                                                                     
The Pretoria High Court today announced its decision to set aside the           
arbitrator"s partial award made in Telkom"s dispute with Telcordia, following   
the hearing of an extensive six-week review application that started on         
11 August 2003. Telcordia was ordered to pay Telkom"s costs, including the costs
of three counsels.                                                              
In terms of the court order, the previous arbitrator, Boswood QC, was removed.  
The case will now be heard by a panel of three retired Judges of the Supreme    
Court of Appeal in South Africa.                                                
Telkom"s successful application followed a partial award made by the arbitrator 
in favour of Telcordia on September 27, 2002, despite a pending Section 20      
application by Telkom in the South African High Court to resolve pertinent legal
issues on the matter.                                                           
The dispute first arose in 2000, when Telkom terminated its agreement with      
Telcordia for the delivery of a fully integrated end-to-end customer activation 
and assurance system.                                                           
Telcordia initiated arbitration proceedings under the auspices of the           
International Chamber of Commerce (ICC) during the first quarter of 2001. In    
response to Telcordia"s claims for outstanding amounts and certain out-of-scope 
services of approximately $130 million, Telkom counter-claimed against Telcordia
for in excess of $300 million, including a claim for the refund of monies paid  
by Telkom to Telcordia.                                                         
The High Court decision vindicates Telkom"s view that the partial award was     
vitiated by serious irregularities. Telkom"s exposure to contingent liabilities 
will be significantly reduced for now, and it can look forward to recovering    
some of its expenses.                                                           
Johannesburg                                                                    
27 November 2003                                                                
Issued by:                                                                      
Andrew Weldrick                                                                 
Senior Specialist, Media Relations                                              
Telkom SA Limited                                                               
Tel: +2712 311 1050                                                             
Mobile: +2782 573 6772                                                          
Date: 27/11/2003 12:20:03 PM Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department